Question

Discuss the structure of the global tea market with reference to the following variables:

a. the production of tea

b. the consumption of tea

Answer 1

A key factor driving the development of the market is the rising utilization of tea. By volume, the utilization of tea expanded by around 30 to 36 billion liters from 2013 to 2018. Tea was the second most expended fluid after bundled water in 2017 universally. The development pattern in the creation and utilization of tea is required to keep amid the gauge time frame. Real shoppers of tea as far according to capita utilization incorporate Turkey, Ireland, Paraguay, Argentina, Kuwait, and the UK. Nations, for example, China, Sri Lanka, India, Kenya, and Indonesia are the biggest makers and customers of tea. Fares of tea are additionally expanding to take into account the universally expanding interest for tea. The developing utilization of tea is relied upon to be a key volume driver for the market amid the gauge time frame.

Consumption(demand) level have increased much faster than production(supply), so this situation arise. Here in the diagram prices raised more than quantity consumed raised.

The presentation of premium tea items is recognized as one of the key developing patterns in the worldwide tea showcase. The commitment of customers with drinks is evolving all inclusive. The drink business is to a great extent driven by premium items, and the worldwide tea market isn't an exemption. For example, in the US, the presentation of premium tea items is relied upon to drive the market amid the gauge time frame. Essentially, European tea consumers are searching for specialty and extravagant flavors as modified contributions. Dark tea combinations, natural product/home grown teas are among the tea items that have developing assortments of premium items. In addition, purchasers are additionally eager to spend on premium teas, which thus is contributing generally to the development of the worldwide tea advertise.

Demand for premium tea is inelastic, its supply remains constant and demand rises which results in completely increase in prices.